I would like to sell my house and live with my son putting 40k into his mortgage and just pay rent and giving my daughter the same to buy somewhere. Can i give 40k as a gift?
2007-05-13 20:28:17 · 4 answers · asked by CAROL B 1 in Business & Finance ➔ Taxes ➔ United Kingdom
You can give the 40k as a gift, but in order to avoid IHT, you would have to live for 7yrs.
2007-05-13 20:33:54 · answer #1 · answered by fengirl2 7 · 0⤊ 0⤋
Yes you can make the gift with no tax implications except that Inheritance Tax may become payable if you die within seven years. Relief is granted at 20% per annnum from year 2 onwards, so after 4 years you'd get relief on £8,000.
However, bearing in mind the amount involved, it is unlikely that your estate would be worth in excess of the current £300,000 exemption.
2007-05-14 12:44:58 · answer #2 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
Go and see a tax consultant. This could be the best hour of time you have spent and should only cost a small amount.
Alternatively try phoning you local tax office to see what they say. Your son and daughter could also phone their tax offices just to make sure you all get the same answer.
2007-05-14 04:09:51 · answer #3 · answered by Mark J 5 · 0⤊ 0⤋
max of 12,000 a year. So, 2 x 12,000 is 24,000. Next year, you can give the rest..--
Perhaps you should see an accountant.
what he charges you may easily be offset in what you (he) saves in interest.
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Try your bank mortgage dept. maybe then help and not charge you.
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HOLD THE PHONE?? Are you in the US?
If you're in England, I don't know.
Forget the amount, but see an accountant anyway.
2007-05-14 03:35:27 · answer #4 · answered by TedEx 7 · 0⤊ 0⤋